Consider the following sectors of an economy's population. i.Savers
Ii)Borrowers
Iii)People of fixed income
Iv)Lenders
Which of the above lose due to inflation?
A)i, ii ,iii
B)i, ii ,iii, iv
C)i, iv
D)i, iii, iv

Question

Quizplus · Accepted Answer

Savers, people of fixed income, and lenders lose due to inflation because the real value of their savings, fixed income, and the money they lend decreases over time. Borrowers can benefit from inflation as they repay their loans with money that is worth less than when they borrowed it.

Consider the Following Sectors of an Economy's Population